Nokia becomes most popular mobile phone brand in China
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Nokia has become the most popular brand of mobile telephones in China. It is estimated that Nokia currently controls about one third of the Chinese market, while its closest rival, Motorola, has just over one fifth.
"The main reason for the rise in our market share has been improved distribution both in the rural market and in the suburbs outside the cities", says Colin Giles, who is responsible for Nokia’s customer and marketing activities in China.
This year alone Nokia has increased the number of its distribution outlets in China by about 20 percent. There are now about 48,000 locations in hundreds of cities around China where Nokia phones are available. Motorola’s sales network comprises about 30,000 shops.
Distribution in China is hampered by the large size of the country, and by the uneven levels of development in different areas. Nokia has received unexpected help from enterprise-minded Chinese. In ascertaining its own distribution channels, Nokia noticed that in more remote towns, merchants themselves have sought to expand their operations.
"They packed telephones in their backpacks, hopped on a bus, and went to sell in smaller towns. This brought new distribution channels that we were not involved in", Giles says.
Chinese manufacturers, such as TCL, Bird, Konka, and Haier have lost market share to the surge of the foreign giants. Nokia and Motorola are able to capitalise on their better brand recognition and the higher quality of their products.
Nokia expects the number of mobile telephone subscribers around the world to rise to three billion by 2008. Half of the growth is set to come from China, India, and other parts of Asia.
In China, most of those who buy their first mobile telephones live in small towns and in rural areas, where most of the population live. Nokia has developed a large selection of inexpensive basic models for the Chinese market, with prices starting at just over EUR 40.
Nokia has also worked with mobile operators, such as China Mobile, to make it calling cheaper. China Mobile is now the world’s largest mobile phone service provider: in February alone it got 4.5 million new customers.
While many in remote areas of China are now buying their first handsets, many in the more prosperous cities are trading in for newer and more expensive models.
In addition to coastal areas, the more expensive phones are also selling well in more remote centres of growth. China has 141 cities with more than a million inhabitants.
"China is not a cheap market. The average sales price is about the world average", Giles says.
Helsingin Sanomat
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| 31.8.2006 - TODAY |
 Nokia becomes most popular mobile phone brand in China
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